Victor's Vegan Deli plans a two-week discount on veggie wraps, reducing the price from $7.00 to...
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Accounting
Victor's Vegan Deli plans a two-week discount on veggie wraps, reducing the price from $7.00 to $5.50. Promotion costs $1500. Victor expects veggie wrap sales to increase by 30%, with a 15% decline in salad sales. Weekly data are:
Product | Sales Price | Variable Costs | Sales Volume |
Veggie Wraps | $7.00 | $3.50 | 300 |
Salads | $6.00 | $3.00 | 400 |
Requirement: Analyze the impact on sales and profitability.
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